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You have been hired as CEO of the largest airline flying to and from the Louisville
International Airport. On the first day of your employment, you are notified that customers
are outraged about the new pricing policies of your airline. You are asked to h

1.
What evidence in the conversation between Sofia and Damario would lead him
to believe the property was ready to seek significant rate increases?
In the conversation between Damario and Sofia, Sofia mentions to Damario that
the occupancy index of the re

A price in the middle approach, as I understand it, is the price which buyers see as
the right value of the product. A buyers value of the product depends on desire to
buy, ability to buy and willingness to buy. Desire to buy depends on the buyers
desire

Read the case study on page 127 and answer the questions.
1. Assume Damario is successful in selling the idea of a discounted thru-the-week
package for seniors to the rest of the revenue committee. What specific fences
would you recommend he construct to

1.What are some possible reasons you believe would motivate Elizabeth to
support granting her groups request?
Elizabeth has credible reasons to support granting her groups request. There is
an availability for the requested number of rooms and more on eac

You plan to open a restaurant and have specific information about the
operation. You still need to research data to complete a pro forma
income statement to finalize a request for additional investment capital.
You know that your operation has 150 seats.

Basic Information
Boston, MA
Location of Restaurant
8/1/2016
Date of opening
150
Total Number of seats
50%
Occupancy Rate
360 days/year To simplify calculations, it is assumed that the restaurant is open for 52 w
Number of days open
Costs and expenses
Foo

1. AssumeyouwereDamarioandthatMark,thecontroller,wasprivately
discussing with you Pams meeting suggestion that, due to extremely
competitivemarketconditions,pricesattheresortneededtobereducedin
order to increase the revenues needed to ensure its profitabi

Explain the 4 P's in the Marketing Mix. Which do you think plays a more
important role in the Marketing Mix?
Four Ps of the marketing mix are:
i.
Product
ii.
Promotion
iii.
Place
iv.
Price
Product is the service or goods that is actually being sold. The

Which traditional foodservice pricing methods will you use in your
restaurant and why? Product cost percentage, product cost: plus or
contribution margin?
I would use the contribution margin pricing method to price items in my future
restaurant. I believ

The President of the United States (POTUS) is coming to your city to sign a back-to-work
bill due to a large manufacturing plant opening up in your community. He wants to use
this factory as a back-drop to sign the bill, and he will stay in the city overn

Explain the Profit Fallacy in your own words. Why should one never consider price
alone when considering a purchase?
The age old definition of profit, as the amount of revenue exceeding expenses and
costs, has been challenged. Profit as I see it now is th

Explain differential pricing and how an RM could utilize this strategy to his or
her advantage.
Differential pricing is defined as the strategy of selling the same product to different
customers at different prices. One of the ten principles of Revenue Ma

1. Do you think the guests who would be attracted to Braylons pricing strategy are
the same type of guests as those that would be attracted to Lynettes pricing
strategy? Why?
No, the type of guests that would be attracted to Braylons pricing strategy are

No, I would not make a policy on always overbooking. Overbooking is done by
airlines/hotel industry to not miss out an opportunty. Any empty room/seat is a missed
opportunity for the airlines. Observing past trends and forecast models help analyze the
num

You are considering opening a brand new independent restaurant on the main
thoroughfare of your town where there are many franchised and recognizable
restaurant names along the same route. You understand how customers consider QSP
(quality, service, and p

Discussion Forum 6.1
Explain the importance of figuring REVPAR.
Is occupancy or ADR more important when considering REVPAR?
REVPAR is defined as the revenue per available room, often used as a performance
measure in the hotel industry. REVPAR can be calcu